DURANGO COLORADO ECONOMIC UPDATE FOR 2007!

There are several areas of growth that have stabilized this regional area, and have produced an increase in employment of 8%. La Plata County has the advantage of having one of the largest national gas basins in the United States, and with the rising cost of oil and gas, the interest in expanding the drilling operations is high. Other areas of economic health include tourism, retail sales, airport passenger activity, and agriculture. Population has grown in the County to 48,563 in 2007. Unemployment has stayed under 3% for the last two years.

The forecast for the national economy is expected to have a slow start in 2008, with a slow recovery in the 2nd half of the year. There are concerns for inflation and unemployment, and continued international uncertainty. GDP growth is projected to be 1.3% for the first half, and 2.1% for the second half of 2008. Inflation is expected to increase to approximately 5% to 5.5%. Unemploymnent is projected to increase to 5.2% in the first half of 2008 from 5% in 2007. Housing starts are expected to decrease to approximately 1 million units from 1.1 million units.

Information Source: Southwest Business Forum, January 11, 2008, Fort Lewis College's 16th annual focus on our future: Business and Economics Sponsored by Wells Fargo San Juan Market.

If you would like further information from the forum, please contact me, Don Ricedorff, www.donricedorff.com, don@frontier.net, or 970-375-7014.